How The Monetary System Is Completely Corrupt & Why Cryptocurrency Is Different!

Our money is most definitely not what we have been told. The creation of money is "privatized".

Henry Ford, in the 1930's, supposedly remarked that if Americans knew the real truth about banking, "there'd be a revolution before tomorrow morning".

All fiat currency will fail because of hyperinflation. It is not a question of if it will fail. It is a question of when and how much inflation will take place before it does.

When the Federal Reserve and Central Banks started printing money they definitely knew that their currency was going to collapse and it would be massively devalued against Gold and Silver.

What Truly Is Money?

97% of the money in the economy is created by the banks, in the form of bank deposits.

Money is not paper with a logo of the government, it is simply the number that shows up when you check your balance at an ATM.

Only 3% of money is still in that old-fashioned form of cash that you can touch.

This number is a 'liability' or IOU from the bank to you. By using credit cards or internet banking, you can spend the IOU as if it was a $10 note. By creating electronic IOUs the banks created a substitute for money.

What Is A Loan?

Every single loan issued by a bank creates new money. Hard to believe? This is common knowledge to the managers of the banking system. In March 2014, the Bank of England release a report called “Money Creation in the Modern Economy”, where they stated that:

“Commercial [i.e. high-street] banks create money, in the form of bank deposits, by making new loans. When a bank makes a loan, for example to someone taking out a mortgage to buy a house, it does not typically do so by giving them thousands of pounds worth of banknotes. Instead, it credits their bank account with a bank deposit of the size of the mortgage. At that moment, new money is created.” Original paper here

Martin Wolf, member of the Independent Commission on Banking, said to the Financial Times that: “the essence of the contemporary monetary system is the creation of money, out of nothing, by private banks’ often foolish lending.” Article

How Does Debt Truly Work?

When you take out a loan, more money is created. People start to borrow more and more money flows into the economy. As debt goes up, the amount of money follows.

Because money is created when you borrow, if there is $300 in your bank account someone else is $300 in debt.

If we need more money to go out of debt we need to go even further into debt with the banks. But if the financial crisis was caused by people having too much debt, how can the solution be for people to take on more debt?

When you pay your own debt, that money is not given to someone else, it disappears! Loan repayments are the opposite of money creation. Banks create new money when they make new loans, and ‘destroy’ money when they repay loans.

When many people try to pay their debts at the same time there will be less money and less new lending. When this happens, it’s like draining the oil from the engine of a car: pretty soon, everything stops working.

It's near impossible to reduce debt without a recession being created. Your debts can only be paid off using money from someone else's debt. This creates a debt trap, where over time the level of personal debt in the economy has to keep growing.

But we may not be completely doomed, cryptocurrency is the future!

The Bright Light Of Cryptocurrency

The US Dollar has not been tied to a tangible asset for quite some time. In fact, every US Dollar in circulation is backed only by “the full faith and credit of the United States”, and has no inherent or intrinsic value whatsoever.

Bitcoin, the most popular decentralized currency in the world right now, has a fixed supply of 21 million coins. No more coins can ever be issued beyond that point, giving all bitcoins in circulation some form of value at any time, with the potential to increase in value over time. It will take until 2140 until all 21 million bitcoins are mined.

Additionally, Bitcoin has no single point of failure, making the network far more secure and completely tamper-proof. Unlike fiat currency, where one institution is responsible for controlling the money supply, Bitcoin is consumer driven. On top of that, Bitcoin has multiple points of distribution, as the “mining” process takes place all over the world.

Last but not least, spent bitcoins are injected directly into Bitcoin’s growing economy once again. Spent fiat currency is kept out of the ecosystem until it is brought back to the bank, a process that can take anywhere from hours to years. Bitcoin’s economy is self-sustainable, open to anyone, and simply better.

My Perspective

Our money has been made to fail from the beginning, any system which has been made to succeed will do better. Cryptocurrencies are the first step to a decentralized future! And it does not have to be Bitcoin, Steem, the Cryptocurrency behind the very website you are reading this article on could be the new money!

Thank you for learning the truth about our monetary system and I hope you trust cryptocurrencies more than a dollar! I'll join you shortly in the comments.

The US Dollar has not been tied to a tangible asset for quite some time. In fact, every US Dollar in circulation is backed only by “the full faith and credit of the United States”, and has no inherent or intrinsic value whatsoever.

I'm so glad to read this. People keep saying to me "Money is backed by gold", but I just can't get my head around that. Sure, I can accept that this was the case long ago, but I simply don't believe that it is like this now. I can't just go to my bank, tell them I want to take out my bank account value in gold and get 'my' gold. It doesn't work like that. I simply don't believe that all of the money in the world right now is backed by a stack of gold somewhere... Doesn't seem logical. So I'm happy to read your statement here.

NOPE it is not different! Wait until you read this: Crypto-hunters Beware: TWO Breakthroughs Could WIPE OUT Bitcoin VS Bitcoin Could Cause An Economic Apocalyse (I posted this a few hours ago) Ignore it at your risk and peril

Great write up. I couldn't agree more about crypto being the first step to a decentralized future. The way I like to look at it is that bitcoin is like gold, it's hard and slow to move. STEEM is easy and fast to transact with like fiat but better.